[8:06am ET] Gold trading late last week led me to ask the following questions: Capitulation or Manipulation? Buying Opportunity or Crisis?
Here is my thinking: Interventionists at the Fed, Treasury and/or IMF are at work here given that on Thursday over 8 tonnes of gold was sold via the gold ETF (GLD) and the price dropped -$22.10/oz over two days. The price of Silver dropped even faster. Then why was the price of copper, platinum and palladium disaffected? Why on those two rally days in the equity markets was the precious metals industry group the lone loser, where the goldminer index ($XAU) plunged -5.0% on Thursday and a further -3.4% on Friday? Why did this happen on the days that the $USD was bumping up against the 50-day Moving Average line of resistance and the Euro pushing down on its 50d MA support? Was the attempt here to scare the goldbugs, or just the goldbugs capitulating at a time when probably they should be waiting the outcomes in the currency market and regarding the important divergence in the metals group?